China to cut surcharges on thermal power plants, paving way for price rise- document

China’s state planner will reduce surcharges paid by coal-fired power producers, paving the way for provincial authorities to raise prices charged to the grid operator, according to a document sent to regional officials and power producers and seen by Reuters.

The change is effective July 1, according to the document sent by the National Development and Reform Commission (NDRC), and will help utilities manage rising coal prices.

The NDRC did not immediately respond to a faxed request for comment.

The reduction of one surcharge by 25 percent and the elimination of another comes as power companies report losses as coal prices hit record highs.

Thermal coal futures prices rose more than 40 percent this year to a record high around 580 yuan ($84.90) per tonne on June 20.